Analyst Joseph Moore from Morgan Stanley maintained a Hold rating on NXP Semiconductors (NXPI – Research Report) and decreased the price target to $231.00 from $235.00.
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Joseph Moore has given his Hold rating due to a combination of factors affecting NXP Semiconductors. The company is currently facing challenges with its end-markets, particularly with the end-of-life for its former Freescale digital networking products, which contribute to around 4% of its total revenue. Additionally, the company is not immune to automotive sector issues, and there is uncertainty surrounding the recovery of end-demand. Despite these challenges, NXP has managed its inventory levels effectively and has maintained a lower balance sheet inventory compared to some of its peers.
Recovery in revenue is heavily dependent on market conditions, and there are no clear signals of demand resurgence. While the company is controlling what it can, including gross margin and inventory levels, the outlook remains cautious. Joseph Moore notes that revenue is expected to fall below NXP’s target range in 2025 but anticipates a return to growth within the company’s targets by 2026. Given the current uncertainties, particularly in the automotive sector, Moore remains cautious, leading to the Hold rating.
Moore covers the Technology sector, focusing on stocks such as Broadcom, Nvidia, and Western Digital. According to TipRanks, Moore has an average return of 13.0% and a 55.72% success rate on recommended stocks.
In another report released today, Citi also upgraded the stock to a Hold with a $210.00 price target.